On politics in the Golden State

California lawmaker proposes tax breaks for commercial space firms

With California the focus of a
growing private spaceflight industry, state Sen. Steve Knight (R-Palmdale) has proposed revising tax laws to make the state more
attractive to employers.

Knight, whose father was a test
pilot, has introduced legislation to provide an exemption from sales and use taxes for equipment or
materials used to renovate or reconstruct properties used as space launch
sites.

“We need to level the playing
field before we irretrievably lose business to our competitors,” Knight said. “Without
Senate Bill 19 we risk losing California’s vital aerospace industry to other
states and countries that are more business-friendly to this and other
industries.”

California’s Mojave Desert is home to several
commercial space ventures that hope to offer space flights to paying customers,
including Scaled Composites and XCOR
Aerospace Inc.

But Stuart Witt, chief executive of the Mojave Air
& Space Port, warned in February that California risks losing aerospace
firms to other states if it doesn't
become more business friendly.

In October, Gov. Jerry Brown signed another Knight
bill that limited the legal liability of commercial space operators for death
or injuries resulting from flights, provided that passengers have been informed
of the risks and given written consent.